Description

This book illustrates the impact of leverage, dividend policy and voluntarily contribution (donations, charities and kind gift) on Agency cost of free cash flow in Pakistan. The free cash flow is defined as the cash that is in the hand of the manager by paying all the expenditures excluding expenditures such as research and development.The over all value of the firm can be maximized by reducing the agency cost of free cash flow.Firm must devised their financial policies in such a way that reduce agency cost of free cash flow.The content of this book will provide insight on the key financial policies that can be adopted to reduce agency cost of free cash flow.The results of many studies proved that debt, dividend policy and voluntarily contributions are effective mechanism of controlling agency cost of free cash flow.